Lessons from Partnerland: Reflections on 2024

Over the years, the world of partnerships has developed its own set of axioms. Chief among them is the well-trodden 80/20 rule: 80% of the results are driven by just 20% of the partners. Yet, as I reflected on 2024, I was struck by how often these lessons learned are forgotten in the ever-more complex and specialized partnership landscape. As we usher in a new year, it feels timely to revisit some of these lessons.

Smaller Is (Usually) Better

Whether system integrators (SIs), independent software vendors (ISVs), or resellers, 2024 reinforced a simple truth: the smaller the partner, the faster the progress.

Consider system integrators. Global players (GSIs) with their sprawling reach and big-brand allure are tempting. But how does a 200-person scale-up effectively engage with such a behemoth? It can be done, of course, but in a world of finite resources, starting with boutique SIs—those focused on specific verticals, regions, or segments—yields quicker results. These smaller partners tend to be hungrier, nimbler, and culturally more similar to startups and scaleups. For most organizations, beginning with smaller, more agile partners is not just prudent; it’s essential.

Less Is More (More or Less)

Every partnership professional knows the drill: recruitment and enablement are time-consuming, and results often take a year or more to materialize. But as the pressure to hit targets mounts, the temptation to widen the partner pool becomes almost irresistible.

The result? A watering down of the ideal partner profile, leading to relationships with weaker joint value propositions and, unsurprisingly, diminished traction. The enduring lesson here is to resist the urge to expand too broadly. Instead, double down on depth; focus on fewer, high-value partnerships that drive real customer value rather than spreading resources thin. Quality, as ever, trumps quantity.

The Services Imperative

Contemporary resellers—including agencies and value-added resellers—are increasingly motivated not by discounts or referral fees, but by customer introductions and opportunities to develop complementary services. In 2024 I was reminded that the traditional 20-30% reseller discount is less compelling than the prospect of building sustainable service lines around products. If you want to motivate your channel partners, think beyond commissions and prioritize their ability to create value-added services.

Cloud Marketplaces: A Procurement and Marketing Channel

The cloud hyperscalers—AWS, Azure, and GCP—dominated the partnership discourse in 2024, sparking equal measures of excitement and unease. However, unrealistic expectations persist, particularly around hyperscalers as deal generators. Many ISVs still view cloud marketplaces as a lead source, a perspective that inevitably leads to disappointment at the C- level.

The real value of cloud platforms lies elsewhere: in co-marketing opportunities and streamlined procurement.

• Co-Marketing: Hyperscalers routinely cover up to 50% of costs for events, sponsorships, and case studies. Additional marketing development funds (MDF) often follow certifications and earned competencies. While getting listed on these marketplaces takes effort, the ROI in co-marketing support can be significant.
• Procurement Simplification: The marketplaces shine in reducing friction for buyers. Customers can unlock committed cloud spend, bypassing budgetary constraints, and benefit from pre-negotiated terms that minimize legal and procurement reviews.

For ISVs, focusing on these aspects—rather than hoping for a flood of sourced deals—is the path to deriving real value from the hyperscalers.

AI FOMO: A 2024 Distraction

It would be remiss to review the year without mentioning AI. 2024 saw a flurry of AI-driven startups emerge, creating a heady mix of innovation and FOMO. Many of us wondered: Would these companies bake partnerships into their go-to-market strategies from day one?

The short answer: Probably not from day one. The long answer: As these native-AI firms mature and find product-market fit, I expect 2025 to bring a more deliberate focus on partnerships. Only then will we see whether ecosystem-led growth becomes central to their strategies. For further reading, see the piece I co-authored with Andrew Beckmann on AI partnerships.

Parting Thoughts

As partnerships evolve, the fundamentals endure. It’s easy to get caught up in trends and shiny new buzzwords, but the hard-earned lessons remain the bedrock of success. Here’s to a 2025 where we continue to learn—and relearn—the lessons that drive lasting impact.